Protecting business’ assets is important for maximizing productivity and improving business performance.
“Risk Management” has been defined as the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to eliminate, transfer, minimize, monitor, and control the probability and/or impact of unfortunate events; and to maximize strategic opportunities.[1]
Companies are under intense pressure to become more efficient, doing more with the same or fewer resources. Eroding operating margins, declining revenues, and the need for new streams of growth are converging. At the same time, companies are concerned about compromising quality and customer service. The risk-management function has not escaped this “squeeze.”
Many risk-management departments are working with reduced budgets while being pressured to reduce overall company costs. This pressure extends to outside consultants and vendors that assist the risk-management department.
A Lean Six Sigma process-improvement strategy can help companies to stay competitive, and extending this strategy to risk management is a must to optimize overall benefits. Linked to my website, www.sandrunrisk.com, are several white papers that explain how risk managers can use Lean Six Sigma methods and tools to control costs, reduce inefficiencies, and quickly develop solutions to problems while expanding value-adding activities that help to protect the company’s profit margins and support top-line growth.
I welcome your feedback in the comments below.
[1] Hubbard, Douglas (2009), The Failure of Risk Management: Why It’s Broken and How to Fix It. John Wiley & Sons, p. 46.
Companies are under intense pressure to become more efficient, doing more with the same or fewer resources. Eroding operating margins, declining revenues, and the need for new streams of growth are converging. At the same time, companies are concerned about compromising quality and customer service. The risk-management function has not escaped this “squeeze.”
Many risk-management departments are working with reduced budgets while being pressured to reduce overall company costs. This pressure extends to outside consultants and vendors that assist the risk-management department.
A Lean Six Sigma process-improvement strategy can help companies to stay competitive, and extending this strategy to risk management is a must to optimize overall benefits. Linked to my website, www.sandrunrisk.com, are several white papers that explain how risk managers can use Lean Six Sigma methods and tools to control costs, reduce inefficiencies, and quickly develop solutions to problems while expanding value-adding activities that help to protect the company’s profit margins and support top-line growth.
I welcome your feedback in the comments below.
[1] Hubbard, Douglas (2009), The Failure of Risk Management: Why It’s Broken and How to Fix It. John Wiley & Sons, p. 46.
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